Town of Falmouth, Maine Proposed FY Budget

Transcription

1 Town of Falmouth, Maine Proposed FY Budget 1

2 Departments submitted requests Management and finance reviewed operating budget requests from Department Heads met with Department Heads prepared and distributed proposed budget package to the Town Council 2

3 Health Insurance costs are projected to increase due to a 12.7% increase in the 2017 rate and a projected 9% increase in Payroll increases Workers Compensation experience rate has increased from 68% to 75% causing a $37K increase to our contribution. Increased IT costs as we add 3 Fire Stations to the Town fiber network and increase the speed of the entire network to 100Mbs to accommodate our increased reliance on the cloud for data storage. Ambulance medical supplies are projected to increase $22K due to Maine Medical Center discontinuing the provision of ambulance medical supplies. Increased budget funding for CIP partially offset by use of $75,000 in undesignated fund balance. Town growth has put increasing pressure on Police, Fire and Public Works staffing needed to maintain service levels. This has required the Town to request the addition of the following positions: Dispatcher, Police Officer, Public Works Project Manager, Public Works Truck Driver/Laborer and an additional weekend Ambulance Crew. 3

4 Non-Property Tax Revenues are projected to grow $342K led by auto excise taxes and interest income. Additional revenues in the Community Programs Special Revenue Fund from our before and after school program have allowed us to reduce the Community Programs annual Appropriation by $50K. The FY18 conversion to Town-owned, energy-efficient street lights produces an estimated partial-year savings of $27K. Reduced fuel costs produce an estimated $29K in savings. The disposal bag special revenue fund was able to absorb another month of collection fees reducing expenses by $26K as revenues are projected to remain steady Bond Interest savings from our recent Public Safety Bond refinancing are $28K in FY18. Expenses in all areas other than those identified as challenges were held to 2017 levels or below 4

5 Budgeted Property Mil Rate Town FY2017 and FY2018 Estimate Valuation based on 1% Growth FY17 FY18 $ Change % Change Expenditures 11,899,602 12,450, , % Overlay 33,574 35,000 1, % Non-tax revenues (5,167,286) (5,538,061) 370, % Net from property taxes 6,765,890 6,947, , % Valuation (thousands)* 2,253, ,276, , % Mil rate (PROPOSED at Budget) % * Adjusted for BETE and Homestead 5

6 IMPACTS IN REVENUE FY18 BUDGET TO FY17 BUDGET AUTO EXCISE TAX 223,233 INTEREST INCOME 149,000 BUILDING PERMITS 19,439 STATE REVENUE SHARING 28,900 TOWER LEASE (22,519) AMBULANCE CHARGES (16,193) TREE GROWTH REIMBURSEMENT (12,528) OTHER 1, ,774 6

7 SIGNIFICANT IMPACTS IN EXPENDITURES FY17 BUDGET vs FY16 BUDGET FULL-TIME SALARIES/SOC SECURITY 271,655 3% COLA, Added Dipatcher, Police Officer, Project Engineer and Plow Driver HEALTH INSURANCE 140,345 due to 12.7% increase in January 2017 and an assumed 9% in January 2018 TRANSFERS TO CAPITAL FUND 85, Budget calls for an increased appropriation WORKERS COMPENSATION 36,803 Increase in experience factor from 59% to 75% PART TIME SALARIES 36,025 Added weekend EMT Crew and Supervisor MEDICAL SUPPLIES 22,500 Maine Medical Center no longer provides medical supplies free of charge RETIREMENT 20,508 Change in MPERS employer contribution from 9.5% to 9.6% COMPUTER SERVICES 16,900 Added 3 fiber locations and increased speeds across network STREET LIGHTING (27,213) Partial year savings due to Town no longer leasing street lights from CMP MOTOR FUEL AND LUBRICANTS (29,063) Reduced unleaded and diesel rates TRANSFER TO SPECIAL REVENUE FUND (50,000) Reduced in Community Programs Appropriation due to increased revenue OTHER 26,811 Primarily Building Maintenance, Bond Principal, Library Contribution TOTAL 550,978 7

8 SUMMARY: Mil Rate Impact MUNICIPAL ONLY (Excludes School and County) Net Expense Increase 550, Overlay Change 1, Increased Revenue (370,774) (0.16) Municipal Share of New Added Valuation (70,207) (0.03) Total Mil Rate Impact

9 Town of Falmouth Sources of Revenue User Fees/Permits 11% State and Other 4% Interest 2% Excise Taxes 27% Property Taxes 56% 9

10 Town of Falmouth FY18 Budget TRANSFER TO OTHER FUNDS 11% COMMUNITY PROGRAMS 4% COMMUNITY DEVELOPMENT 4% NON DEPARTMENTAL/OTHER AGENCIES 6% GENERAL GOVERNMENT 11% FINANCE ADMINISTRATION 6% IT 4% DEBT 2% ECONOMIC DEVELOPMENT 1% PUBLIC WORKS 16% PUBLIC SAFETY 35% 10

11 Expense Percent Increase/Decrease 10.0% 8.0% CPI (January release from BLS) Resident Voted Initiatives Percent Increase/(Decrease) 6.0% B 4.0% A 2.0% 0.0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18-2.0% -4.0% A. Resident Voted Initiative Issuance of Police and Central Fire Buildings Debt in B. Resident Voted Initiative - Open Space in CPI is based on June to June increase in CPI Exceptions: FY17 is based on January 2016 to January year average Town expense growth = 1.52%, 10 year average CPI = 2.08% Town beat CPI increase in 8 out of 12 years 11

12 The Wastewater Enterprise Fund FY18 proposed budget includes expenditures of $2,292,110 represents a $337,182 increase or 17.2% over FY17. Mill Creek Project is estimated to cost $6.1 million and will be financed through a low interest SRF loan through Portland Water District of $5.1 million and $1 million from the Wastewater enterprise fund undesignated fund balance. Constructed in 1971 and is the largest pump station, accepting residential and commercial flows from Route 88 and Route One in addition to all flow from the Town of Cumberland. The Town of Cumberland will pay for 43.7% of the project cost. Annual debt service is projected to be $315,000 with the Cumberland share being $165,000 Wastewater rate payers will see a $1.21 per month or 3.0% rate increase effective July, 1, The increase is necessary to pay for the new debt associated with the Mill Creek pump station. 12

13 Falmouth Monthly Sewer Rates year average sewer rate growth = 2.3% 2016 Average Maine Town and City Sewer Rate = $ Falmouth Sewer Rate = $41.65 a difference of $

14 Municipality Annual Rate Monthly Rate Yarmouth $ $ Lewiston $ $ Saco $ $ South Portland $ $ Auburn $ $ Scarborough $ $ Brunswick $ $ Kittery $ $ Wells $ $ Kennebunkport $ $ Augusta $ $ Current Falmouth $ $ Bangor $ $ Biddeford $ $ Proposed Falmouth $ $ Freeport $ $ Westbrook $ $ Gorham $ $ Brewer $ $ Windham $ $ Gardiner $ $ Ogunquit $ $ North Berwick $ $ Sanford $ $ York $ $ Kennebunk $ $ Portland $ $ Cumberland $ $ Cape Elizabeth $ $ Average $ $

15 Property Mil Rate Calculation Projected Valuation Numbers Town School County Total TIF TOTAL Expenditures 12,450,581 36,073,493 1,624,750 50,148,824 2,935,038 53,083,862 Overlay 35, ,000-35,000 Non-tax revenues (5,538,061) (8,281,196) - (13,819,257) - (13,819,257) Net from property taxes 6,947,520 27,792,297 1,624,750 36,364,567 2,935,038 39,299, valuation (thousands)* 2,276, , ,460, Valuation (thousands)* 2,253, , ,420,204.8 Valuation Growth (.50% excluding Homestead/BETE) 1.0% 10.1% 1.6% rate (Proposed) rate (Actual) Mil rate increase Pct. increase/decrease 1.7% 7.0% 5.0% 5.9% * Adjusted for BETE and Homestead 15

16 AAA Bond Rating Town Debt Outstanding = $46.9 Million Maximum Town Debt Limit = $338 Million Lowest overall property tax mil rate of comparable communities (using 2014 stateadjusted valuations) Falmouth 2014 state adjusted mil rate = $13.82 Greater Portland Community average = $16.09 mils 16

17 Yarmouth Cape Elizabeth Cumberland Greater Portland Average Falmouth Scarborough Gorham Windham Greater Portland Mil Rate Comparison

18 17.00 Mil Rate Comparison Greater Portland Average Falmouth

19 Proposed Mil Rate $ $ $ Avg Mil Rate Increase 0.40 Avg Increase % 3.27% Compound Annual Growth Rate 2.91% MIL RATE HISTORY 19

20 Property Mil Rate Calculation Projected Valuation (Adjusted for BETE and Homestead) State Aid to Ed Assume Flat State Aid to Education Town School County Total Reduction Total Expenditures 12,450,581 36,073,493 1,624,750 50,148,824-50,148,824 Overlay 35, ,000-35,000 Non-tax revenues (5,538,061) (9,214,625) - (14,752,686) 933,429 (13,819,257) Net from property taxes 6,947,520 26,858,868 1,624,750 35,431, ,429 36,364, valuation (thousands) 2,276, Valuation (thousands) 2,253,321.9 Valuation Growth (.5 % excluding Homestead/BETE) 1.0% rate (at flat State Aid to Education) rate (Actual) Mil rate increase (at flat State Aid to Education) Pct. increase/decrease 1.7% 3.4% 5.0% 3.1% 5.9% 20

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